[LOGO]
Small Company Fund
SEMI-ANNUAL REPORT
April 30, 1995
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in U.S. Small Company Portfolio (the "Portfolio"), at value (Note 1)...... $29,398,959
Receivable for capital stock sold.................................................... 17,000
-----------
Total Assets .................................................................. 29,415,959
-----------
LIABILITIES:
Payables for:
Capital stock redeemed............................................................ 206,367
Administrative fee (Note 2)....................................................... 2,968
Expense reimbursement fee (Note 2)................................................ 13,249
-----------
Total Liabilities .............................................................. 222,584
-----------
NET ASSETS ................................................................................ $29,193,375
===========
Net Assets Consist of:
Paid-in capital...................................................................... $28,905,454
Accumulated undistributed net investment income...................................... 15,469
Accumulated net realized loss........................................................ (1,929,944)
Net unrealized appreciation.......................................................... 2,202,396
-----------
Net Assets ................................................................................ $29,193,375
===========
Net asset value and offering price per share
($29,193,375 / 2,552,130 shares) ........................................................ $11.44
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividend income..................................................... $89,602
Interest income..................................................... 45,755 $ 135,357
-------
Dividend income allocated from Portfolio............................ 90,679
Interest income allocated from Portfolio............................ 22,456
Expenses allocated from Portfolio................................... (68,299) 44,836
------- ---------
Total Investment Income ........................................................ 180,193
---------
Expenses:
Expense reimbursement fee (Note 2)................................................ 88,714
Administrative fee (Note 2)....................................................... 22,240
---------
Total Expenses ................................................................ 110,954
---------
Net Investment Income ......................................................... 69,239
---------
NET REALIZED AND UNREALIZED LOSS (Notes 1 and 3):
Net realized loss on investments.................................................. (260,685)
Net change in unrealized appreciation on investments.............................. (350,123)
---------
Net Realized and Unrealized Loss .............................................. (610,808)
---------
Net Decrease in Net Assets Resulting from Operations ................................ $(541,569)
=========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months
ended For the
April 30, 1995 year ended
(unaudited) October 31, 1994
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.............................................. $ 69,239 $ 169,234
Net realized loss on investments...................................... (260,685) (1,669,259)
Net change in unrealized appreciation on investments.................. (350,123) (1,934,369)
---------- ----------
Net decrease in net assets resulting from operations ............... (541,569) (3,434,394)
---------- ----------
Dividends and distributions declared (Note 1):
From net investment income............................................ (212,045) (11,231)
From net realized gains............................................... -- (1,296,730)
In excess of net realized gains....................................... -- (9,455)
---------- ----------
Total dividends and distributions declared.......................... (212,045) (1,317,416)
---------- ----------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock.............................. 400,596 11,606,326
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ........................ 72,843 702,379
Net cost of capital stock redeemed.................................... (9,927,634) (9,217,592)
---------- ----------
Net (decrease) increase in net assets resulting from
capital stock transactions ....................................... (9,454,195) 3,091,113
---------- ----------
Total decrease in net assets.................................... (10,207,809) (1,660,697)
NET ASSETS:
Beginning of period..................................................... 39,401,184 41,061,881
---------- ----------
End of period (including undistributed net investment income
of $15,469 and $158,275, respectively) ............................... $29,193,375 $39,401,184
=========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each period
<TABLE>
<CAPTION>
For the period
For the six April 23, 1991
months ended For the years ended October 31, (commencement of
April 30, 1995 ------------------------------------ operations) to
(unaudited) 1994 1993 1992 October 31, 1991
-------------- ------- ------- ------- ----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $ 11.54 $ 12.92 $ 10.70 $ 10.36 $ 10.00
Income from investment operations:
Net investment income ............................. 0.02 0.05 0.01 0.02 0.01
Net realized and unrealized gain (loss) ........... (0.05) (1.04) 2.84 0.34 0.35
Less dividends and distributions (Note 1):
Dividends to shareholders from net
investment income ............................... (0.07) (0.01) (0.01) (0.02) --
Distributions to shareholders from net
realized gains .................................. -- (0.38) (0.62) -- --
Distributions to shareholders in excess
of net realized gains ........................... -- (0.00)* -- -- --
------- ------- ------- ------- -------
Net asset value, end of period ...................... $ 11.44 $ 11.54 $ 12.92 $ 10.70 $ 10.36
======= ======= ======= ======= =======
Total investment return ............................. (0.25)%** 7.81% 27.00% 3.46% 3.60%**
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ......... $29,193 $39,401 $41,062 $20,504 $11,097
Ratio of expenses to average net assets ........... 1.10%*** 1.10% 1.10% 1.10% 1.10%***
Ratio of net investment income to
average net assets .............................. 0.42%*** 0.40% 0.04% 0.16% 0.36%***
Portfolio turnover rate ........................... 16%(A) 140% 116% 67% 8%
<FN>
- -----------------
* Less than $0.01 per share.
** Not Annualized.
*** Annualized.
</FN>
</TABLE>
(A) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred all of its
investable assets to the Portfolio is shown in the Portfolio's Financial
Highlights which is included elsewhere in this report.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
Small Company Fund (the "Fund") is a separate diversified series of The 59 Wall
Street Fund, Inc. (the "Corporation") which is registered under the Investment
Company Act of 1940, as amended. The Corporation is an open-end management
investment company organized under the laws of the State of Maryland on July 16,
1990. The Fund commenced operations on April 23, 1991.
On January 17, 1995, the Fund invested all of its investable assets in the
U.S. Small Company Portfolio (the "Portfolio"), a diversified, open-end
management investment company having the same investment objectives as the Fund.
The value of such investment reflects the Fund's proportionate interest in the
net assets of the Portfolio (approximately 51% at April 30, 1995). The
performance of the Fund is directly affected by the performance of the
Portfolio. The financial statements of the Portfolio, including the schedule of
investments, are included elsewhere in this report and should be read in
connection with the Fund's financial statements.
The following is a summary of significant accounting policies for the Fund.
A. Valuation of Investments. Valuation of investments by the Portfolio
is discussed in Note 1 of the Portfolio's Notes to Financial Statements
which are included elsewhere in this report.
B. Accounting for Investments. The Fund records its share of net
investment income, realized and unrealized gain and loss and adjusts its
investment in the Portfolio each day. All the net investment income and
realized and unrealized gain and loss of the Portfolio is allocated pro
rata among the Fund and other investors in the Portfolio at the time of
such determination.
C. Federal Income Taxes. It is the Corporation's policy to comply with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
Each Fund files a tax return annually using tax accounting methods required
under provisions of the Internal Revenue Code which may differ from
generally accepted accounting principles, the basis on which these
financial statements are prepared. Accordingly, the amount of net
investment income and net realized gain reported on these financial
statements may differ from that reported on the Fund's tax return due to
certain book-to-tax timing differences such as losses deferred due to "wash
sale" transactions and utilization of capital loss carryforwards. These
timing differences may result in temporary over-distributions for financial
statement purposes and are classified as distributions in excess of
accumulated net realized gains. As such, the character of distributions to
shareholders reported in the Financial Highlights table may differ from
that reported to shareholders on Form 1099-DIV. These distributions do not
constitute a return of capital.
D. Dividends and Distributions to Shareholders. Dividends and
distributions to shareholders are recorded on the ex-dividend date.
2. Transactions with Affiliates.
Investment Advisory Agreement. Through January 16, 1995 the Corporation had
an investment advisory agreement with Brown Brothers Harriman & Co. (the
"Adviser") for which the Adviser received a fee from the Fund calculated daily
and paid monthly at an annual rate equivalent to 0.65% of the Fund`s average
daily net assets. This agreement was terminated on January 17, 1995 upon the
Corporation investing the assets of the Fund in the Portfolio. See Note 2 of the
Portfolio's Notes to Financial Statements which are included elsewhere in this
report.
<PAGE>
THE 59 WALL STREET SMALL COMPANY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
Administrative Fee. The Corporation has an administrative agreement with
Brown Brothers Harriman & Co. (the "Administrator") for which the Administrator
receives a fee from the Fund calculated daily and paid monthly at an annual rate
equivalent to 0.15% of the Fund's average daily net assets. The Administrator
has a subadministration services agreement with 59 Wall Street Administrators,
Inc. for which 59 Wall Street Administrators, Inc. receives such compensation as
is from time to time agreed upon, but not in excess of the amount paid to the
Administrator. For the six months ended April 30, 1995, the Fund incurred
$22,240 for administrative services.
Shareholder Servicing/Eligible Institution Agreement. The Corporation has a
shareholder servicing agreement and an eligible institution agreement with Brown
Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee
from the Fund calculated daily and paid monthly at an annual rate equivalent to
0.25% of the Fund's average daily net assets.
Expense Reimbursement Fee. 59 Wall Street Administrators, Inc. (or prior to
July 1, 1993, 59 Wall Street Distributors, Inc.) has agreed to pay certain
expenses of the Fund subject to reimbursement by the Fund. To accomplish such
reimbursement, 59 Wall Street Administrators, Inc. receives an expense
reimbursement fee from the Fund, computed and paid monthly, such that after such
reimbursement the aggregate expenses will not exceed 1.10% of the average daily
net assets of the Fund. For the six months ended April 30, 1995, 59 Wall Street
Administrators, Inc. incurred $106,400 in expenses on behalf of the Fund,
including investment advisory fees of $48,675 and shareholder servicing/eligible
institution fees of $40,736. The expense reimbursement fee agreement for the
Fund will terminate on the earlier of either February 1, 1996 or the date on
which the cumulative reimbursement fee equals the cumulative payments of such
reimbursable expenses made by 59 Wall Street Administrators, Inc. and 59 Wall
Street Distributors, Inc.
3. Investment Transactions. Investment transactions of the Portfolio are
discussed in Note 3 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. For the period November 1, 1994 through
January 16, 1995, the cost of purchases and the proceeds of sales of investment
securities other than short-term investments were $4,924,205 and $5,450,119,
respectively. There were no purchases or sales of U.S. government obligations
during the period. For that same period, the Fund paid brokerage commissions of
$12,132 to Brown Brothers Harriman & Co. for transactions executed on its
behalf. Custody fees for the Fund paid pursuant to the expense reimbursement
agreement (see Note 2) were reduced by $12,860 as a result of the Fund directing
a portion of its portfolio transactions to certain brokers.
4. Capital Stock. The Corporation is permitted to issue 2,500,000,000
shares of capital stock, par value $.001 per share, of which 25,000,000 shares
have been classified as shares of the Fund. Transactions in shares of capital
stock were as follows:
For the For the
six months ended year ended
April 30, 1995 October 31, 1994
---------------- ----------------
Capital stock sold......................... 36,232 935,250
Capital stock issued in connection with
reinvestment of dividends
and distributions ....................... 6,751 58,000
Capital stock repurchased ................. (903,812) (758,757)
------- -------
Net (decrease) increase ................... (860,829) 234,493
======= =======
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1995
(unaudited)
Shares Value
------ -------------
COMMON STOCKS (95.5%)
BANKS (3.6%)
13,510 CCB Financial Corp................................. $ 562,354
60,790 Hibernia Corp. - Class A........................... 486,320
10,210 ONBANcorp, Inc..................................... 266,098
22,800 Premier Bancorp, Inc.*............................. 384,750
14,540 Union Planters Corp. .............................. 348,960
------------
2,048,482
------------
COMMERCIAL SERVICES (3.1%)
13,780 Franklin Quest Co.*................................ 458,185
22,780 Robert Half International, Inc.* .................. 600,822
40,880 Valassis Communications, Inc.* .................... 715,400
------------
1,774,407
------------
CONSUMER DURABLES (2.9%)
28,220 Arctco, Inc........................................ 395,080
22,212 Bush Industries, Inc. - Class A ................... 258,214
12,070 Cobra Golf, Inc.*.................................. 261,014
17,640 Thor Industries, Inc............................... 368,235
37,930 Winnebago Industries, Inc.......................... 384,041
------------
1,666,584
------------
CONSUMER NON-DURABLES (6.0%)
32,300 Authentic Fitness Corp............................. 532,950
56,590 Chiquita Brands International ..................... 756,891
59,190 Hudson Foods, Inc. - Class A. ..................... 1,021,027
27,310 Nautica Enterprises, Inc.*......................... 761,266
15,810 Timberland Co. - Class A*.......................... 357,701
------------
3,429,835
------------
CONSUMER SERVICES (1.8%)
32,055 Applebee's International, Inc. .................... 703,207
15,370 Carmike Cinemas, Inc. -
Class A*......................................... 341,982
------------
1,045,189
------------
ELECTRONIC TECHNOLOGY (12.3%)
16,440 Cypress Semiconductor Corp.*. ..................... 497,310
16,630 Cyrix Corp.*....................................... 396,002
31,100 Helix Technology Corp.............................. 1,010,750
15,570 International Rectifier Corp.* .................... 395,089
24,420 Maxim Integrated
Products, Inc.*.................................. 891,330
27,270 Microchip Technology, Inc.*........................ 761,856
17,780 Read-Rite Corp.*................................... 378,936
24,900 Tech-Sym Corp.*.................................... 628,725
38,570 Thermedics, Inc.*.................................. 728,009
27,520 Three-Five Systems, Inc.*.......................... 667,360
18,020 Vicor Corp.*....................................... 691,517
------------
7,046,884
------------
ENERGY MINERALS (1.5%)
13,060 Ashland Coal, Inc.................................. 360,782
18,190 Diamond Shamrock, Inc.............................. 488,856
------------
849,638
------------
FINANCE (9.3%)
27,050 Charter One Financial, Inc......................... 620,459
18,380 Finova Group, Inc.................................. 620,325
3,943 Fund American
Enterprises, Inc.*............................... 284,317
26,690 Manufactured Home
Communities, Inc................................. 420,367
15,000 McGrath Rentcorp................................... 238,125
16,100 PHH Corp........................................... 648,025
30,420 Pioneer Group, Inc................................. 773,809
37,180 Security Capital Industrial Trust ................. 580,938
14,500 TCF Financial Corp................................. 621,688
13,134 United Companies
Financial Corp................................... 499,092
------------
5,307,145
------------
HEALTH SERVICES (9.3%)
12,390 Cerner Corp.*...................................... 658,219
22,560 Charter Medical Corp.*............................. 400,440
16,850 Coventry Corp...................................... 394,922
17,000 Genesis Health Ventures, Inc.* .................... 463,250
28,510 Horizon Healthcare Corp.*.......................... 595,146
21,010 Integrated Health Services, Inc. .................. 727,471
26,530 Lincare Holdings, Inc.............................. 815,798
8,180 Medaphis Corp.*.................................... 465,237
14,000 Vencor, Inc.*...................................... 434,000
10,990 Vivra, Inc.*....................................... 353,054
------------
5,307,537
------------
HEALTH TECHNOLOGY (3.1%)
18,880 Idexx Laboratories, Inc.*.......................... 816,560
51,910 North American
Biologicals, Inc.*............................... 467,190
12,610 Sybron International Corp.*........................ 468,146
------------
1,751,896
------------
INDUSTRIAL SERVICES (2.9%)
16,810 Global Industries, Ltd.*........................... 434,959
8,000 Granite Construction, Inc.......................... 161,500
21,630 J. Ray McDermott, S.A.*............................ 594,825
31,390 USA Waste Services, Inc.*.......................... 470,850
------------
1,662,134
------------
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1995 (continued)
(unaudited)
Shares Value
------ -------------
INSURANCE (3.4%)
16,000 Allied Group, Inc................................. $ 466,000
34,830 Commerce Group, Inc............................... 605,171
15,275 Orion Capital Corp................................ 536,534
7,850 Protective Life Corp.............................. 356,194
------------
1,963,899
------------
NON-ENERGY MINERALS (7.3%)
37,030 Birmingham Steel Corp............................. 735,971
14,510 Fibreboard Corp.*................................. 553,194
36,910 J&L Specialty Steel, Inc.......................... 682,835
105,290 Kinross Gold Corp.*............................... 631,740
45,790 Magma Copper Co.*................................. 766,983
36,090 Republic Gypsum Co................................ 365,411
18,790 Rouge Steel Co. - Class A......................... 420,426
------------
4,156,560
------------
PROCESS INDUSTRIES (2.9%)
14,330 Chesapeake Corp................................... 444,230
48,460 Culp, Inc......................................... 460,370
14,940 Fieldcrest Cannon, Inc.*.......................... 330,548
27,650 Mercer International, Inc. - SBI* ................ 413,022
------------
1,648,170
------------
PRODUCER MANUFACTURING (7.1%)
17,970 AGCO Corp......................................... 640,181
24,330 Excel Industries, Inc............................. 310,208
29,550 Gentex Corp.*..................................... 561,450
18,000 Kennametal, Inc................................... 603,000
21,300 Micros Systems, Inc.*............................. 669,619
40,530 Simpson Industries, Inc........................... 445,830
15,080 Smith (A.O.) Corp................................. 360,035
14,930 Wabash National Corp.............................. 464,696
------------
4,055,019
------------
RETAIL TRADE (8.9%)
27,390 BMC West Corp.*................................... 404,002
19,130 Baker (J.), Inc................................... 239,125
19,000 Eckerd Corp.*..................................... 553,375
34,320 Fastenal Co....................................... 915,915
35,510 Good Guys, Inc.*.................................. 346,223
9,470 Michaels Stores, Inc.*............................ 270,487
35,230 Ross Stores, Inc.................................. 341,291
21,270 Sports & Recreation, Inc.*........................ 249,923
20,161 Strawbridge & Clothier - Class A ................. 398,180
23,270 Sunglass Hut International, Inc.* ................ 663,195
17,040 Venture Stores, Inc............................... 185,310
26,385 Williams-Sonoma, Inc.*............................ 499,666
------------
5,066,692
------------
TECHNOLOGY SERVICES (0.7%)
32,320 Tech Data Corp.*.................................. 383,800
------------
TELECOMMUNICATIONS (3.1%)
28,920 Acme-Cleveland Corp............................... 600,090
14,000 Aspect Telecommunica-
tions Corp.*.................................... 586,250
39,330 Boston Technology, Inc.*.......................... 592,408
------------
1,778,748
------------
TRANSPORTATION (4.5%)
29,200 American Freightways Corp.*....................... 686,200
26,245 Skywest, Inc...................................... 462,568
15,900 TNT Freightways Corp.............................. 376,631
7,720 Werner Enterprises, Inc. ......................... 162,120
15,540 Wisconsin Central
Transportation Corp.*........................... 888,694
------------
2,576,213
------------
UTILITIES (1.8%)
27,640 Iowa-Illinois Gas & Electric Co. ................. 580,440
22,120 Sierra Pacific Resources.......................... 461,755
------------
1,042,195
------------
TOTAL COMMON STOCKS
(identified cost $51,488,547) .................... $54,561,027
------------
Principal
Amount
- -----------
TIME DEPOSITS (3.7%)
$2,100,000 State Street Bank (Cayman)
5.25%, 5/2/95
(identified cost $2,100,000) ..................... $ 2,100,000
-----------
TOTAL INVESTMENTS (identified cost $53,588,547) (a) ... 99.2% $56,661,027
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 0.8 449,202
----- -----------
NET ASSETS ............................................ 100.0% $57,110,229
===== ===========
- ---------------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $53,588,547, the
aggregate gross unrealized appreciation is $5,373,487, and the aggregate
gross unrealized depreciation is $2,301,007, resulting in net unrealized
appreciation of $3,072,480.
See Notes to Financial Statements.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $53,588,547) (Note 1)........... $56,661,027
Cash................................................................................. 452,998
Receivables for:
Dividends......................................................................... 35,197
Interest.......................................................................... 1,838
Deferred organization expenses (Note 1).............................................. 11,997
-----------
Total Assets .................................................................. 57,163,057
-----------
LIABILITIES:
Payables for:
Organization expenses (Note 1).................................................... 9,914
Investment advisory fee (Note 2).................................................. 30,600
Administrative fee (Note 2)....................................................... 1,648
Accrued expenses and other liabilities............................................ 10,666
-----------
Total Liabilities .............................................................. 52,828
-----------
NET ASSETS ................................................................................ $57,110,229
===========
Net Assets Consist of:
Paid-in capital...................................................................... 54,037,749
Net unrealized appreciation.......................................................... 3,072,480
-----------
$57,110,229
===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
STATEMENT OF OPERATIONS
For the period January 17, 1995 (commencement of operations) to April 30, 1995
(unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends......................................................................... $ 127,917
Interest.......................................................................... 28,031
---------
Total Income ................................................................... 155,948
---------
Expenses:
Investment advisory fee (Note 2).................................................. 91,204
Administrative fee (Note 2)....................................................... 4,911
Amortization of organization expenses (Note 1).................................... 717
Miscellaneous..................................................................... 11,210
---------
Total Expenses ................................................................ 108,042
---------
Net Investment Income ......................................................... 47,906
---------
NET REALIZED AND UNREALIZED GAIN (Notes 1 and 3):
Net realized loss on investments.................................................. (37,832)
Net change in unrealized appreciation on investments
Beginning of period.............................................. --
End of period.................................................... 3,072,480
Less unrealized appreciation acquired in connection with the
59 Wall Street Small Company Fund contribution (Note 1)........ (1,223,663)
---------
Net change in unrealized appreciation................................ 1,848,817
----------
Net Realized and Unrealized Gain .............................................. 1,810,985
----------
Net Increase in Net Assets Resulting from Operations ................................ $1,858,891
==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the period
January 17, 1995
(commencement
of operations) to
April 30, 1995
(unaudited)
-----------------
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income................................................................ $ 47,906
Net realized loss on investments..................................................... (37,832)
Net change in unrealized appreciation on investments................................. 1,848,817
-----------
Net increase in net assets resulting from operations .............................. 1,858,891
-----------
Capital Transactions:
Proceeds from contributions.......................................................... 77,180,318
Value of withdrawals................................................................. (22,029,080)
-----------
Net increase in net assets resulting from capital transactions .................... 55,151,238
-----------
Total increase in net assets................................................... 57,010,129
NET ASSETS:
Beginning of period.................................................................... 100,100
-----------
End of period ......................................................................... $57,110,229
===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
FINANCIAL HIGHLIGHTS
For the period
January 17, 1995
(commencement
of operations) to
April 30, 1995
(unaudited)
-----------------
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) .................. $57,110
Ratio of expenses to average net assets .................... 0.77%*
Ratio of net investment income to average net assets ....... 0.15%*
Portfolio turnover rate .................................... 63%
- -------------
* Annualized.
See Notes to Financial Statements.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. U.S. Small Company
Portfolio (the "Portfolio") is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment company which
was organized as a trust under the laws of the State of New York on June 15,
1993. The Portfolio commenced operations on January 17, 1995 and received a
contribution of certain assets and liabilities, including securities, with a
value of $33,437,499 (including $1,223,663 of unrealized appreciation) on that
date from The 59 Wall Street Small Company Fund in exchange for a beneficial
interest in the Portfolio. The Declaration of Trust permits the Trustees to
create an unlimited number of beneficial interests in the Portfolio.
The following is a summary of significant accounting policies:
A. Valuation of Investments. (1) The value of investments listed on a
securities exchange is based on the last price on that exchange prior to
the time when assets are valued, or in the absence of recorded sales, at
the average of readily available closing bid and asked prices on such
exchange; (2) unlisted securities are valued at the average of the quoted
bid and asked prices in the over-the-counter market; (3) securities or
other assets for which market quotations are not readily available are
valued at fair value in accordance with procedures established by and under
the general supervision and responsibility of the Trustees. Such procedures
include the use of independent pricing services, which use prices based
upon yields or prices of securities of comparable quality, coupon, maturity
and type; indications as to the value from dealers; and general market
conditions; (4) short-term investments which mature in 60 days or less are
valued at amortized cost if their original maturity was 60 days or less, or
by amortizing their value on the 61st day prior to maturity, if their
original maturity when acquired by the Portfolio was more than 60 days,
unless this is determined not to represent fair value by the Trustees.
B. Accounting for Investments. Security transactions are accounted for
on the trade date. Realized gains and losses on security transactions are
determined on the identified cost method. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend
date except that, if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Portfolio is informed
of the ex-dividend date. Dividend income is recorded net of foreign taxes
withheld where recovery of such taxes is not assured. Interest income is
accrued daily.
C. Federal Income Taxes. The Portfolio will be treated as a
partnership for federal income tax purposes. As such, each investor in the
Portfolio will be subject to taxation on its share of the Portfolio's
ordinary income and capital gains. It is intended that the Portfolio's
assets will be managed in such a way that an investor in the Portfolio will
be able to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision for
federal income taxes is necessary.
D. Deferred Organization Expenses. Expenses incurred by the Portfolio
in connection with its organization are being amortized on a straight-line
basis over a five-year period.
2. Transactions with Affiliates.
Investment Advisory Fee. The Portfolio has an investment advisory agreement
with Brown Brothers Harriman & Co. (the "Adviser") for which it pays the Adviser
a fee calculated daily and paid monthly at an annual rate equivalent to 0.65% of
the Portfolio`s average daily net assets. For the period January 17, 1995
through April 30, 1995, the Portfolio incurred $91,204 for advisory services.
<PAGE>
U.S. SMALL COMPANY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
Administrative Fee. The Portfolio has an administrative agreement with
Brown Brothers Harriman Trust Company (Cayman) Ltd. (the "Administrator") for
which it pays the Administrator a fee calculated daily and paid monthly at an
annual rate equivalent to 0.035% of the Portfolio's average daily net assets.
The administrator has a subadministration agreement with Signature Financial
Group (Cayman) Ltd. for which Signature Financial Group (Cayman ) Ltd. receives
such compensation as is from time to time agreed upon. For the period January
17, 1995 through April 30, 1995, the Portfolio incurred $4,911 for
administrative services.
Trustee Fee. Each Trustee of the Portfolio receives an annual retainer paid
by the Portfolio. Each Trustee is also reimbursed for out-of-pocket expenses
incurred in connection with board meetings. For the period January 17, 1995
through April 30, 1995, the Portfolio incurred $3,933 for Trustees fees.
3. Investment Transactions. For the period January 17, 1995 through April
30, 1995, the cost of purchases and the proceeds of sales of investment
securities other than short-term investments were $47,204,009 and $24,947,348,
respectively. For that same period, the Portfolio paid brokerage commissions of
$32,687 to Brown Brothers Harriman & Co. for transactions executed on its
behalf. Custody fees for the Portfolio were reduced by $10,000 as a result of
the Portfolio directing a portion of its portfolio transactions to certain
unaffiliated brokers.
<PAGE>
The 59 Wall Street Fund, Inc.
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(212) 493-8100
This report is submitted for the general information of
shareholders and is not authorized for distribution to
prospective investors unless preceded or accompanied by
an effective prospectus. Nothing herein contained is to be
considered an offer of sale or a solicitation of an offer
to buy shares of the Funds. Such offering is made only by
prospectus, which includes details as to offering price and
other material information.
